The net loss, which compared with a A$16.1 million profit ayear ago, included a A$427.8 million non-cash impairment forgoodwill and brands, and a A$106.6 million writedown related toNixon.

Billabong shares fell as much as 7 percent in early trade toA$0.845. The stock has plummeted about 87 percent over the pasttwo years, compared with a 3 percent rise in the benchmarkS&P/ASX 200 index over the same period.

Billabong said talks are continuing with two takeoversuitors - private equity firm Altamont Capital Partners, led byBillabong's former U.S. boss Paul Naude, and clothing group VFCorp - and due diligence is expected to be completednext month.

Both suitors have pitched offers at A$556 million, or A$1.10per share, a significant discount to a A$3.30 bid by TPG Capital that Billabong rejected a year ago as too low.Subsequent offers of A$1.45 from TPG and Bain Capital last yearwere withdrawn after due diligence.

The company said it now expects full-year underlyingEBITDA(earnings before interest tax, depreciation andamortisation) of A$74 million to A$85 million in constantcurrency terms, down from the A$85 million to $94 million itforecast in December when it cited weakness in European,Canadian and Brazilian markets.

"These results emphasise that significant structural changeis essential to return the group to profitable growth," ChiefExecutive Launa Inman said in a statement.

The company, which has already sold off some assets, wouldbegin a major restructure of its global supply chain next monthto reduce the number of apparel suppliers from more than 275 to50. It is also on track to close 160 of its stores by June,Inman said.

VF Corp, which owns brands including The North Force,Wrangler, Timberland, The Vans and 7 For All Mankind, said whenit released its own earnings last week that bid discussions werecontinuing but it had no further comment.

The Greensboro, North Carolina-based company said Asia wouldremain its strongest region as it reported ahigher-than-expected fourth-quarter profit but gave a 2013outlook below analysts' estimates.